South Asian University is facing financial crunch

The South Asian University (SAU), a regional institution established by the eight member nations of SAARC (South Asian Association for Regional Cooperation), is facing a severe financial crisis. 

According to its President KK Aggarwal, member countries except India are withholding their agreed-upon contributions, hindering the university's operations.

It seems that stalemate in the SAARC summit is also having spillover effects on SAU funding.

Some member countries have not made contributions in five years, said Aggarwal.

“I have been personally reaching out to the member states, but they have not paid, despite expressing agreement in principle,” he added. 

Aggrawal was recently in Kathmandu, where he held talks with representatives of the SAARC Secretariat and other government officials. 

For the operation of the campus, India shoulders a significant funding burden, contributing 57 percent of the university's budget. The remaining 43 percent is meant to be shared by the other countries, with Afghanistan currently inactive due to the Taliban takeover in 2021.

While the member states participate in SAARC activities, their financial commitments to the university remain unfulfilled. 

The university’s board has also not been meeting regularly, which has exacerbated the problem faced by the institution. The 11th meeting of the board took place in late 2023, six years after its previous meeting in 2017. 

 

Aggarwal told ApEx that he was exploring short-term funding solutions. In order to launch new programs, he emphasized the need for additional resources. The SAU operates within the framework of SAARC. Decisions regarding its funding are made collectively by member countries and communicated through proper channels.